1) Each Federal Reserve bank has nine directors. Of these ________ are appointed by the member banks and ________ are appointed by the Board of Governors.

A) three; six

B) four; five

C) five; four

D) six; three

2) The nine directors of the Federal Reserve Banks are split into three categories: ________ are professional bankers, ________ are leaders from industry, and ________ are to represent thepublic interest and are not allowed to be officers, employees, or stockholders of banks.

A) 5; 2; 2

B) 2; 5; 2

C) 4; 2; 3

D) 3; 3; 3

3) Member commercial banks have purchased stock in their district Fed banks; the dividend paid by that stock is limited by law to ________ percent annually.

A) four

B) five

C) six

D) eight

4) The Federal Reserve Bank of ________ plays a special role in the Federal Reserve System because it houses the open market desk.

A) Boston

B) New York

C) Chicago

D) San Francisco